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HomeMy WebLinkAboutReso 2013-073 - Redding Joint Powers Financing Authority e e RESOLUTION NO. 2013-073 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE ISSUANCE BY THE REDDING JOINT POWERS FINANCING AUTHORITY OF WATER AND WASTEWATER REFUNDING REVENUE BONDS; AUTHORIZING EXECUTION AND DELIVERY OF INST ALLMENT SALE AGREEMENTS; A BOND PURCHASE AGREEMENT; AND A CONTINUING DISCLOSURE AGREEMENT;. APPROVING FORM OF OFFICIAL STATEMENT; AND AUTHORIZING EXECUTION OF DOCUMENTS AND THE TAKING OF ALL NECESSARY ACTIONS RELATING TO THE FINANCING WITH THE REDDING JOINT POWERS FINANCING AUTHORITY WHEREAS, the City of Redding (the "City") and the Housing Authority of the City of Redding (the "Housing Authority") have heretofore executed a joint exercise of powers agreement, dated December 6, 1988, and thereafter amended (the "Joint Powers Agreement"), by and between the City and the Housing Authority, which Joint Powers Agreement creates and establishes the Redding Joint Powers Financing Authority (the "Authority"); and WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, the Authority is authorized to issue bonds for financing or refinancing public capital improvements whenever there are significant public benefits to be realized; and WHEREAS, the City desires to approve the Authority's issuance of not to exceed $18,000,000 aggregate principal amount of Redding Financing Authority Water and Wastewater Refunding Revenue Bonds, 2013A Series (the "Bonds"), for the purpose of refunding the Authority's Redding Joint Powers Financing Authority Water Refunding Revenue Bonds, 2003 Series A (the "2003 Water Bonds"), and Redding Joint Powers Financing Authority Wastewater Refunding Revenue Bonds, 2002 Series A (the "2002 Wastewater Bonds" and, collectively with the 2003 Water Bonds, the "Prior Bonds"); and WHEREAS, in order to refund the Prior Bonds, the City desires to enter into a 2013 Amended and Restated Installment Sale Agreement (Water System) and a 2013 Amended and Restated Installment Sale Agreement (Wastewater System) (collectively, the "Installment Sale Agreements"); and WHEREAS, the Authority and City will enter into a Bond Purchase Agreement (the "Bond Purchase Agreement") with RBC Capital Markets, LLC (the "Underwriter); and WHEREAS, in order to assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2-12, the City will execute and deliver a Continuing Disclosure Agreement (Water and Wastewater) (the "Continuing Disclosure Agreement"); and WHEREAS, there have been submitted and are on file with the City Clerk proposed forms of the Installment Sale Agreements, Bond Purchase Agreement, Continuing OHSUSA:754130193.3 . e e Disclosure Agreement and an Official Statement with respect to the Bonds proposed to be issued by the Authority, and a Trust Agreement by and between the Authority and U.S. Bank National Association, as Trustee (the "Trust Agreement"); and WHEREAS, the issuance of the Bonds by the Authority and the execution and delivery of the Installment Sale Agreements will result in significant public benefits through demonstrable savings in the effective interest rates and bond issuance costs expected to be paid for the Bonds, and that it furthers the public purpose to assist in such financing; NOW THEREFORE, the City Council of the City of Redding hereby finds, determines, declares and resolves as follows: Section I. All of the recitals set forth above are true and correct, and the City Council so finds and determines. Section 2. The City Council hereby approves the issuance of the Bonds by the Authority, in an aggregate principal amount not to exceed $18,000,060, to refund the Prior Bonds. The officers of the City is hereby directed to perform the duties, if any, imposed upon the City by the provisions of the financing documents approved herein, including the Trust Agreement and the Installment Sale Agreements, and the Director of Finance of the City is hereby authorized and directed to hold the funds and accounts created in said financing documents and directed or permitted to be held by the City. Section 3. The proposed form of 2013 Amended and Restated Installment Sale Agreement (Water System) by and between the City and the Authority, on file with the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver an installment sale agreement in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the term of said installment sale agreement shall end no later than June 1, 2023, and the interest rates result in a true interest cost for the Bonds of not to exceed of three percent (3.0%) per annum. Section 4. The proposed form of 2013 Amended and Restated Installment Sale Agreement (Wastewater System) by and between the Authority and City, on file with the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver an installment sale agreement in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the term of said installment sale agreement shall end no later than June 1, 2023 and the interest rates shall result in a true interest cost for the Bonds of not to exceed of three percent (3.0%) per annum. Section 5. The proposed form of Bond Purchase Agreement, by and among the Underwriter, the Authority and the City, on file with the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is each hereby authorized and directed, on behalf of the City, to execute and deliver a bond purchase OHSUSA:754130193.3 -2- e e agreement in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, the underwriting discount (not including original issue discount) shall not exceed five hundred twenty-five thousandths of one percent (0.525%) of the aggregate principal amount of the Bonds. Section 6. The proposed form of Continuing Disclosure Agreement, by and between the City and U.S. Bank National Association, as trustee and dissemination agent, on file with the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is hereby authorized and directed to and in the name and on the behalf of the City, to execute and deliver a continuing disclosure agreement in substantially said form with said changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 7. The proposed form of Official Statement relating to the Bonds (the "Official Statement"), on file with the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver an Official Statement in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. The Underwriter is hereby directed to distribute copies of the Official Statement to all actual purchasers of the Bonds. Distribution by the Underwriter of a preliminary Official Statement relating to the Bonds is hereby approved and the Mayor or City Manager of the City (or other officer designated by the City Manager) hereby authorized and directed, to execute a certificate confirming that the preliminary Official Statement has been "deemed final" by the City for purposes of Securities and Exchange Commission Rule 15c2-12. Section 8. The City Clerk is hereby authorized and directed to attest the signature of the Mayor, City Manager or other officers of the City.as may be required in connection with the execution and delivery of the Bonds and the Installment Sale Agreements, Bond Purchase Contract and Continuing Disclosure Agreement in accordance with this resolution. Section 9. The officers and City Council members of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents and certificates which they deem necessary or advisable in order to consummate the execution and delivery of the documents mentioned herein and otherwise to effectuate the purposes of this Resolution and the transactions contemplated hereby. Section 10. All actions heretofore taken by the officers and agents of the City with respect to the refunding of the Prior Bonds are hereby ratified, confirmed and approved. Section 11. This Resolution shall take effect from and after its adoption and approva1. OHSUSA:754130193.3 -3- e e I hereby certify that the foregoing is a full, true and correct copy of a resolution duly passed and adopted by the City Council of the City of Redding at a regular meeting thereof held on the 6th day of August, 2013, by the following vote of the members thereof: AYES: NOES: ABSENT: ABSTAIN: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Cadd, Jones, Sullivan, & Bosetti None McArthur None --;:Je;~?&- RICK BOSETTI, Mayor . r , , r , , L ./ ,....... ~:. ' . ... .' FORM APPROVAL: , ATTEST: , "l ."l'" .... J 7'"":'" , ,_to --e.: ,..:"" ~\ !J<"" -'.~- r '~ ~O,~'<~'- 'l' PAMEL~-MI~E,'Ci y~erk ~d'~ RICHARD A. DUVERN7 Attorney ';> ~ OHSUSA:754130193.3 -4- e e CERTIFICATE OF THE CLERK I, Pamela Mize, City Clerk of the City of Redding (the "City"), hereby certify that the foregoing Resolution No. 2013-073, is a full, true, and correct copy of a resolution duly adopted at a special meeting of the City Council of the City duly held in Redding, California, on August 6, 2013, of which meeting all of the members of said City Council had due notice. I further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true, and correct copy of the original resolution adopted at said meeting and entered into said minutes, and that said resolution has not been amended, modified, rescinded, or revoked in any manner since the date of its adoption, and the same is now in full force and effect. An agenda of said meeting was posted at least 72 hours before the meeting at 777 Cypress Street, Redding, California 96001, a location freely accessible to members of the public, and a brief general description of said resolution appeared on said agenda. Dated: _nUO<JF/- ft-,2013. , '1- \ -- " '-x..... ....\ ~ '. , ,,\'~ t / -; '\ J/ ~I , , I ,., - J OHSUSA:754130193.3